Viking Ashanti announces new terms for Auminco merger

 ASX-listed Viking Ashanti has amended the terms of its merger with Auminco Mines, diluting its own shareholding in the combined company.

In November, Viking announced that it would issue more than 129.7-million shares to Auminco shareholders, resulting in that company holding a 59% interest in the enlarged entity, with Viking’s current shareholder base retaining a 41% interest.

However, the miner said on Friday that discussions with Auminco had resulted in revised merger terms.

Under the new agreement, Viking would acquire Auminco in exchange for 81-million shares and 27-million unlisted options, exercisable at 12c each for a term of 30 months.

Viking would also issue three-million unlisted options exercisable at 20c each on or before November 2016.

The amended offer would see Viking shareholders owning a 53% interest in the combined company, while Auminco shareholders would hold a 47% interest.

The merger is subject to a number of conditions, including due diligence by both parties and shareholder and government approval. The merger is also conditional on Viking raising no less than A$4.5-million in equity capital.